Network Archives

Global Cities of the Super-Rich

"The report also ranks the global cities that matter the most to these high-net-worth individuals, based on four categories: economic activity, political power, quality of life, and knowledge and influence. Overall, New York and London top this list as well, followed by Paris, Tokyo, Hong Kong, Singapore, Sydney, Washington, D.C., Toronto, and Zurich. This list is similar to my own ranking of the world's most economically powerful cities. The cities are also ranked on each category individually, and the table below (from the report) charts the leaders in each of the four categories." Continue reading →

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Luxembourg says No to new EU tax law

"Luxembourg, one of the EU's smallest but richest countries, has said No to a new law against tax evasion. The European Commission has been trying to update its anti-tax-fraud legislation for the past eight years. Its 2005 law forces member states to automatically exchange information on EU nationals' deposits in other European Union countries. But it contains gaps on income received via investment funds, pensions, trusts and foundations. It also contains a big hole on Austria and Luxembourg. The two financial centres are exempt from automatic exchange until such time as five non-EU tax havens - Andorra, Liechtenstein, Monaco, San Marino and Switzerland - agree to it as well." Continue reading →

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Total U.S. Public Debt Now Eclipses GDP

"We previously warned of what can transpire when desperate governments are no longer able to shoulder unbearable debts. As one can see in the chart above, total public debt in the United States recently crossed the proverbial Rubicon and now equals 104.95% of GDP. As if this weren't alarming enough, the Fed's official figures – which were used to create the chart above – do not include the nation's swelling, yet politically untouchable unfunded liabilities, namely Medicare and Social Security. When these figures are plugged in to the equation, the US's public debt level skyrockets to astronomical heights." Continue reading →

Continue ReadingTotal U.S. Public Debt Now Eclipses GDP

Ten Reasons the U.S. Is No Longer the Land of the Free

"Since 9/11, we have created the very government the Framers feared: a government with sweeping and largely unchecked powers resting on the hope that they will be used wisely. The indefinite-detention provision in the defense authorization bill seemed to many civil libertarians like a betrayal by Obama. While the president had promised to veto the law over that provision, Levin, a sponsor of the bill, disclosed on the Senate floor that it was in fact the White House that approved the removal of any exception for citizens from indefinite detention. Dishonesty from politicians is nothing new for Americans. The real question is whether we are lying to ourselves when we call this country the land of the free." Continue reading →

Continue ReadingTen Reasons the U.S. Is No Longer the Land of the Free

Arrests in Vanuatu over dubious citizenship approvals

"Among those arrested are a former chairman of the Citizenship Commission and former MP, Jack Eric, and a former secretary of the Commission, Eloi Leye. Chief Inspector, George Toomey, has declined to give details but says those investigated include politicians, leaders and public servants. He says the suspects have been selling Vanuatu citizenship at a low price and ignored the law that requires ten years’ residence for a foreigner to become a citizen. Sources close to the citizenship office and police say it has became a tradition that a month before general elections, politicians collect applications forms from the citizenship office in order to receive sponsorship for their political campaign." Continue reading →

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South Korea Toughens Up Rules On Overseas Accounts

"In a bid to reduce the incidence of tax evasion, the National Tax Service (NTS) is to impose heavier fines on those South Korean residents who are found to hold substantial unexplained financial accounts in overseas jurisdictions. Beginning next year, South Koreans with overseas financial accounts worth more than KRW1bn (USD896,000) will be obligated to report the assets, and to explain the sources of the funds. Failure to do so will result in a 10 percent fine, which will be even greater if the source is found to be the result of tax evasion. The NTS's plans are included within the Government's new proposals to raise additional tax revenue for its welfare programs by improving tax compliance." Continue reading →

Continue ReadingSouth Korea Toughens Up Rules On Overseas Accounts

Banker Groups Sue Treasury, IRS Over Account Reporting Rule or (DATCA)

"Two banker groups sued the U.S. challenging rules that require financial institutions to report information on accounts held by nonresident aliens that may be shared with 72 foreign governments. The Texas Bankers Association and the Florida Bankers Association, in a lawsuit filed today against the Treasury Department and the Internal Revenue Service in federal court in Washington, said the rules are discouraging investment in the U.S. by nonresidents who fear their information may be shared with the governments of countries including Egypt, Pakistan and Venezuela." Continue reading →

Continue ReadingBanker Groups Sue Treasury, IRS Over Account Reporting Rule or (DATCA)

How the IRS Violates Legal Tender Laws

"One would think that it is more costly to deal with non-cash methods of payment. In any case, the last time I checked, the Federal Reserve Notes in my wallet all still bore the notice, 'This note is legal tender for all debts public and private' This means that they cannot be refused by the creditor for repayment of a debt previously incurred–especially not for payment of taxes, which are the pre-eminent 'public debt.' While the IRS may not be strictly in violation of legal tender laws, because one can still use cash to pay at some IRS offices, its anti-cash policy is just another tactic in the Federal government’s relentless war to stamp out cash payments." Continue reading →

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U.S. Government Watchdog Agency Urges IRS to Intensify Offshore Efforts

"A much larger number of what the IRS calls 'recalcitrant' account-holders chose another route. Instead of entering a voluntary disclosure program, they simply started reporting their foreign accounts, without paying penalties or interest. Such taxpayers avoid paying any delinquent taxes, interest, or penalties, unless audited. Evidence of an explosion in quiet disclosures comes from the fact the number of people filing FBAR forms nearly doubled from 281,000 in 2007 to 516,000 in 2010. The agency has urged the IRS to examine closely these first-time filers for disclosure violations in earlier years. And, the IRS has promised to do just that." Continue reading →

Continue ReadingU.S. Government Watchdog Agency Urges IRS to Intensify Offshore Efforts

Britain hits offshore gambling industry with 300 million pounds in taxes

"Under rules published on Friday, Britain will tax gambling according to where customers are based rather than where the online operator is registered, meaning that offshore operators pay the same 15% tax rate as domestic companies. The tax will be levied on companies' gross profit in the 2 billion pound remote-gambling market. 'It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the government is taking decisive action to ensure this can no longer happen,' Economic Secretary to the Treasury Sajid Javid said. 'These reforms will ensure that remote-gambling operators who have UK customers make a fair contribution to the public finances.'" Continue reading →

Continue ReadingBritain hits offshore gambling industry with 300 million pounds in taxes